Abstract:

The aim of the current study is to measure the level of ICT adoption among SMEs’ in Malaysia and the factors that influence SMEs’ favorable attitude and barriers that hinder them from adopting ICT in their business. SME is the heart of any national development both from an economy point of view as well as employment. ICT enterprises need creativity and innovations of a fast nature which is possible with the small sector. ICT also enables one to become a global player even in their greenfield project. The questions that arise are: Given this situation, “Why are SMEs slow in adopting this vital tool for progress?” “Why is the encouragement mediocre with no special focus into training and development and incentives created for them?” “Why have there not been any TNA studies of this emerging area till date, while many other countries have reviewed and updated this area of study and are poised to make major breakthroughs?” “Why are later entrants in this progressing much faster then Malaysia, who is actually targeting to become the knowledge leaders of the Asian region?” Though many of the areas would remain unaddressed in our study a fairly good glimpse is expected to be available to the researchers in this regard. Nevertheless, a study of the status is felt interesting and useful for academicians, policy makers and the industries attempting this development.  Questionnaire responses were collected from 50 SME units’ ICT status enabled consideration of the diverse uses of digital technology that already existed to support individuals, businesses and organizations use of information and knowledge management approaches. Research found that, most of the managers and supervisors of SMEs are aware of the benefits of ICT but yet a large portion of SMEs did not adopt ICT till date. This research also figured out the factors of ICT adoption, ICT planning of adoption, benefits of ICT adoption and barriers of ICT adoption among SMEs. Suggestions on the steps towards ICT adoption among SME has been discussed in this research. Therefore the change to ICT usage by SME sector is expected to open up a wide zone of operations favorable to the SME sector and other stakeholders, with a better business chance to all especially the SMEs adopting this initiative. It is left to the authorities to create a more favorable environment than presently existing towards this sector.